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Category ArchiveClarion Partners

Mesa West Originates $165M Refi of Two San Diego Apartment Buildings

Mesa West Capital has originated $165 million for San Diego-based Sunroad Enterprises to refinance two San Diego, Calif. luxury rental complexes, Mesa West announced today.

The five-year, non-recourse and first-mortgage financing was split into two pieces, with Mesa West keeping a $145 million A-note and New York-based investment manager Clarion Partners keeping the remaining $20 million on its books, according to a news release from Mesa West. The deal closed December 19.

“With Clarion, we had a conversation with the borrower to bring in a partner, and leverage was important to the borrower,” Mesa West Vice President Jason Bressler, who told Commercial Observer. “We identified Clarion as being active in multifamily in Southern California. HFF really helped us figure out the parameters borrower was looking for, and Clarion was a natural fit to get the execution the borrower wanted.”

ariva apts courtesy mesa west capital Mesa West Originates $165M Refi of Two San Diego Apartment Buildings
Ariva Apartments at 4855 Ariva Way in San Diego. Courtesy: Mesa West Capital

The debt is backed by Ariva Apartments and Vive on the Park, located at 4855 Ariva Way and 8725 Ariva Court, respectively, in Kearny Mesa, a suburb of San Diego.         

“We continue to be bullish on multifamily,” Bressler said. “It’s an asset class, in whole, that’s always going to bounce back very quickly. These properties are brand new and are very high quality and what each benefits from is they are in a central location with certain demand drivers.”

Ariva Apartments is comprised of 253 rental units within two four-story buildings. Construction was completed in 2014 and the building was fully occupied within 16 months of opening, according to a press release from Mesa West. The complex includes a cardio and strength playground and assigned, underground parking.

Monthly rents for Ariva range from $1,815 for 595-square-foot studios to $2,700 for a 1,241-square-foot, two-bedroom pad, according to the property’s website.

The seven-story Vive on the Park was constructed June 2017 and is home to 302 units. Amenities include a pool and spa, a fitness center with multiple stories, rooftop lounges with barbeque pits, social areas with sand fire pits, a business center, a clubroom, a game room, a social club and on-site dry cleaning.

Monthly rents at Vive on the Park range from $1,835 for a 546-square-foot studio to $3,530 for a 1,409-square-foot, three-bedroom apartment.

“The sponsor has done an excellent job in leveraging the portfolio’s quality finishes, high-end and diverse amenity offerings and central Kearny Mesa location in the lease up of these two projects in a very competitive market,” Mesa West Principal Steve Fried, who led the origination team with Bressler, said in prepared remarks. “We are confident in their ability to maintain the strong leasing velocity to meet the demand for this type of product in one of the most rapidly developing pockets in San Diego County.”

Ariva Apartments and Vive on the Park are the two most recent residential developments for Sunroad’s planned 40-acre community called Sunroad Centrum, which will surround the nearby Centrum Park and will be included as part of the Spectrum Technology Center—the redevelopment of the former 232-acre General Dynamics aerospace facility—in Kearny Mesa. Once completed, Sunroad Centrum will include 1,622 multifamily units and approximately 856,000 square feet of commercial office space, according to the release.

HFF Senior Managing Directors Tim Wright and Aldon Cole—out of the firm’s San Diego office—arranged the financing. Wright and Cole did not immediately respond to a request for comment. Sunroad Enterprises could not immediately be reached.

Source: commercial

City Department of Investigation Nails Down 276K-SF Lease in FiDi

The city’s Department of Investigation has inked a 20-year deal for 276,000 square feet at 180 Maiden Lane in the Financial District.

The law enforcement agency, which is responsible for investigating corruption in New York City government, will occupy the entire 16th through 24th floors of the 41-story office tower near the East River waterfront. The lease would represent a 75,000-square-foot expansion from the agency’s current space, according to The New York Post, which was the first to write about the deal. It would also consolidate five separate DOI offices into one.

MHP Real Estate Services and Clarion Partners own the 1.1 million-square-foot building, which spans a full block between Pine and Front Streets.

DOI will pay $52 a square foot for the first five years of the lease, $57 during years six through 10, $62 for years 11 through 15, and $67 for years 16 through 20, according to a notice published in the City Record. The agency will have the option to expand to the 15th and 25th floors within the first two years of the lease. And it will be allowed to renew the lease twice, each time for five years.

Those rents are in line with what other tenants in the building have paid recently. Consulting company Connex Partners leased space at 180 Maiden Lane last month, at an asking rent of $56 a square foot, Commercial Observer reported.

The city expects to spend as much as $56.3 million renovating the office space, but the landlord will kick in $21.3 million, the City Record notes. If the agency invests the maximum $35.1 million, it will shell out roughly $127 per square foot to renovate its new digs.

While the lease has been signed, the Department of Citywide Administrative Services—which handles property for city agencies—has to hold a hearing on the deal next month before the city officially greenlights it.

DCAS told CO that CBRE was involved in the transaction, but a spokesman for the brokerage declined to comment.

Source: commercial

Conferencing Provider Connex Int’l Moving Office to 180 Maiden Lane

Source: commercial